Jefferies has maintained a Buy rating on Shriram Finance, setting a target price of ₹800, which implies a potential upside of approximately 31% from the current market price of ₹610.50.
The company reported Q1FY26 profit after tax of ₹21.5 billion, up 9% year-on-year, which was in line with estimates as lower provisioning offset higher operating expenses. Assets under management (AUM) grew 17% as expected.
While calculated net interest margin (NIM) rose quarter-on-quarter, it came in slightly below estimates due to a rise in liquidity drag. However, contrary to market concerns, gross Stage 3 assets (GS3) declined sequentially and credit costs were better than expected — both seen as key positives by Jefferies.
Disclaimer: This article is based on Jefferies’ brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
